Fintonia Bitcoin Physical Fund and Fintonia Secured Yield Fund aim at professional investors; who are looking for opportunities to interact with a new asset class.
Bitcoin Physical Fund directly buys and stores the first cryptocurrency in the interests of investors. Adrian Chng, Fintonia founder and chairman said that the fund acquires “physical” Bitcoin, not its derivatives. According to him, there is a growing demand for assets from institutional investors. However, many of them have concerns about security when investing and confuses in a large number of exchanges.
Search for the best prices, as well as buying or selling by volume
“As a MAS regulated fund manager with strict standards, we can connect with multiple exchanges and different market-makers, enabling us to find the best prices, as well as buy or sell at volume,” said Chng.
The fund also allows you to transfer fiat and digital funds; solving problems associated with moving large amounts into and out of the system; the company’s founder added.
Secured Yield Fund provides direct loans secured by Bitcoin. Typical borrowers are traders, miners and companies with cryptocurrency on the balance sheet; who have a need for funds, but they are not ready to sell a digital asset, according to Chng.
Bitcoin is an excellent form of collateral for loans
“Bitcoin is an excellent form of collateral for loans. It trades 24/7 and is highly liquid, with approximately $30 billion to $60 billion per day. If required, it can be quickly liquidated in comparison with, for example, commodities and real assets,” he stressed.
Chng expects that during the first year of operation, both funds will reach “triple-digit” in millions of dollars. To ensure the security of cryptocurrency assets, the company cooperates with a licensed and insured custodian who stores them on cold wallets.
Recall that earlier, Australian-based cryptocurrency exchange Independent Reserve has received a license from MAS to operate as a Virtual Asset Service Provider (VASP). The CEO and founder of the exchange, Adrian Przelozny said “A well-regulated environment will benefit both investors and crypto industry stakeholders”. He also added that “Singapore currently has the clearest and most detailed licensing requirements of any jurisdiction in Asia”.